A vegan fast-casual chain you've never heard of is expanding nationwide — and that should scare legacy brands

Steve Heeley, CEO of the healthy fast-casual chain Veggie Grill, is betting he can make vegan food not just palatable, but "craveable."

Founded in 2007, Veggie Grill serves burgers, sandwiches, and salads that have fewer calories than traditional fast-food — and happen to be vegan. The chain takes familiar foods, like buffalo wings and Caesar salad, and swaps out ingredients with plant-based substitutes.

"There are certain perceptions around the word 'vegan.' It means you have to deny yourself or eat brown foods," Heeley, a vegan, tells Business Insider. Not so at Veggie Grill.

The company has 28 locations in California, Washington, and Oregon. Thanks to a new $22 million round of funding last fall, Heeley expects the company to double in size by 2020.

We stopped by a Veggie Grill location in San Jose, California, to see if it meets the hype.

Vegans make up a small slice of the US population, about 2%. But the number of meat-eaters incorporating more plant-based foods into their diets, or "flexitarians," is rising.

So while the vegan population might not be large enough to sustain an upstart fast-casual chain amid competition from McDonald's and KFC, a growing number of millennials might.

Veggie Grill wants to make it fun and easy to eat like a vegan. The company swaps familiar ingredients for plant-based alternatives from startups like Kite Hill and Beyond Meat.

Melia Robinson/Business Insider

When you walk in, it's not abundantly clear that this is a vegan restaurant chain. Scott Nicholson, senior VP of operations, says, "If doesn't happen often, but people get fooled."

Melia Robinson/Business Insider

I head into the kitchen to see where the magic happens.

Melia Robinson/Business Insider

It's unsurprising people can't tell the food is vegan sometimes. The Grilled Quinoa and Veg Burger has a slice of rich and creamy non-dairy, coconut cheese that actually melts.

Melia Robinson/Business Insider

The Santa Fe Crispy Chickin' sandwich features a fried chicken patty made from soy, pea, and wheat protein, that looks and tastes as decadent as a Buttermilk Crispy Chicken Sandwich from McDonald's. It's topped with smashed avocado and spicy mayo.

Melia Robinson/Business Insider

You might have to squint to find tofu on the menu. Veggie Grill uses it sparingly, party because the vegetarian staple gets a bad rap among meat-eaters.

Melia Robinson/Business Insider

Last December, Veggie Grill introduced the famous Beyond Meat burger patty to the menu. The Silicon Valley startup behind it claims the burger sizzles and "bleeds" like real meat.

Melia Robinson/Business Insider

The restaurant prepares it in a classic American style, with grilled onions, tomato, lettuce, a house made sauce, and non-dairy cheese on a sesame seed bun. "I don't eat meat, but it brings back those memories of a great burger," Heeley says. It's since become a bestseller.

Melia Robinson/Business Insider

The burger wouldn't have fooled me. The patty tasted slightly rubbery and was missing the charred outside you find on real beef when grilled.